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Leatherby Dennis: insider trades

Chief financial officer at Tyson Foods. No open-market purchases and 14 sales not made under a pre-set plan, reported from December 10, 2010 to December 1, 2017.

What happened after Leatherby Dennis’s sales?

After their sales, the shares moved +7.1% against the index over 12 months on average (a negative figure means selling was the right call); 43% trailed it.

With 296 insiders tested, some will look skilled or unskilled by chance alone: when we replaced each insider’s stocks with random companies bought on the same days, about 5.7 cleared the bar ahead and 23.3 behind. One record on its own proves little.

Trade by trade

MeasuredTrades countedAverage vs S&P 500MedianWent the right wayYearst-statisticp-valueEvidence
Purchases, 3 months after the report 0 — — — — — — Not enough years
Purchases, 6 months after the report 0 — — — — — — Not enough years
Purchases, 12 months after the report 0 — — — — — — Not enough years
Purchases, 12 months after the trade 0 — — — — — — Not enough years
Sales, 3 months after the report 14 +6.3% +6.5% 36% 8 1.30 0.23 No reliable evidence
Sales, 12 months after the report 14 +7.1% +5.1% 43% 8 0.63 0.55 No reliable evidence
Sales, 12 months after the trade 14 +7.4% +11.2% 43% 8 0.65 0.53 No reliable evidence

“Average vs S&P 500” is the stock’s return including dividends minus the index’s over the same dates, from the close on the first trading day after the report, or from the close on the trade date. Only windows that have finished are counted. For sales, a negative figure means the stock lagged after it was sold, so selling was the right call (green). “Went the right way” is the share of purchases that beat the index, or of sales that trailed it. The t-statistic uses one average per year of reports, because one person’s trades bunch into the same stock and weeks, and needs trades in at least four different years; the p-value comes from the t distribution with that number of years (with four years, a t of 2 has p = 0.14). “Some evidence” means p under 5%, “strong evidence” p under 1% over at least six years.

Companies traded

CompanyTitle on the latest filingPurchasesSalesFirst reportLatest report
Tyson Foods TSN Chief Financial Officer014December 10, 2010December 1, 2017

Trades and what followed

Moves are against the S&P 500; green means the trade went the insider’s way.

ReportedTradedCompanyTradeValue3 months after report12 months after report12 months after trade
December 1, 2017November 29, 2017 TSN Sale $9,464,074 −14.2%−33.1%−34.2%
August 15, 2017August 14, 2017 TSN Sale $9,572,914 +11.4%−22.9%−25.4%
August 19, 2016August 16, 2016 TSN Sale $2,991,137 −11.2%−27.5%−26.0%
August 15, 2016August 12, 2016 TSN Sale $3,987,308 −7.5%−26.0%−26.6%
December 2, 2015November 30, 2015 TSN Sale $5,626,834 +29.8%+2.8%+11.0%
May 27, 2015May 27, 2015 TSN Sale $341,680 +4.4%+54.4%+52.6%
October 1, 2014September 30, 2014 TSN Sale $175,315 −8.2%+7.4%+11.3%
October 2, 2013October 1, 2013 TSN Sale $112,888 +9.0%+29.4%+24.5%
February 6, 2013February 5, 2013 TSN Sale $321,510 −3.5%+31.7%+37.3%
October 4, 2012October 2, 2012 TSN Sale $33,675 +24.3%+62.0%+57.4%
September 12, 2012September 10, 2012 TSN Sale $95,501 +23.7%+68.4%+71.9%
October 5, 2011October 4, 2011 TSN Sale $101,420 +6.0%−33.8%−35.5%
September 21, 2011September 19, 2011 TSN Sale $103,680 +17.6%−30.3%−27.7%
December 10, 2010December 10, 2010 TSN Sale $350,600 +7.0%+16.8%+13.5%

Open-market purchases and sales of at least $10,000 in companies we cover, from SEC Form 4 filings; sales made under a pre-set Rule 10b5-1 plan are not shown. “Not yet” means the window has not finished or the share price was under $5 at entry. These are the shares’ moves after each trade: they say nothing about why Leatherby Dennis traded and do not suggest the use of non-public information. How every insider compares · the insider trading backtest.